Open AccessInvestigating The Effectiveness Of Corporate Governance Code Revisions On The Perspective Of The Revision Interval
Author(s) -
Abdul Hadi Zulkafli,
CheeWooi Hooy,
Chai-Aun Ooi
Publication year - 2017
Publication title -
international journal of business and society
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.236
H-Index - 15
ISSN - 1511-6670
DOI - 10.33736/ijbs.3142.2017
Subject(s) - code (set theory) , corporate governance , value (mathematics) , interval (graph theory) , perspective (graphical) , good governance , business , accounting , economics , computer science , mathematics , statistics , finance , set (abstract data type) , artificial intelligence , programming language , combinatorics
Thisstudy investigatesthe effectiveness of corporate governancecode revisionsonfirm value using 35 countries’ public listed firms over 2007-2014.First, this study finds that progressive code revisions have significant positive relationship with firm value. Second, this study finds that theinterval ofcorporate governancecode revision is significant to influence the effectiveness of code revisions. Further analysis reveals that the relationship between code revision interval and firm value is non-linear, whichis depicted in inverted U-shaped. The findings suggest that a moderate code revision interval, i.e. 4 years once is optimal to maximize firm value. In overall, the findings of thisstudy have suggestedseveral practical implications to the development of thenationalcodesof corporate governance.